The European Commission is narrowing the scope of European Union-wide export controls and expanding export exemptions to more territories, according to an April 24 notice. The measures, announced as draft regulations earlier this month (see 2004160033), apply for 30 days. The commission said it would also notify World Trade Organization partners about the changes “along with other EU coronavirus trade-related initiatives.”
The European Commission approved a French aid package that will provide €150 million for small and medium-sized exporters impacted by the COVID-19 pandemic, according to an April 24 notice. The aid will help those exporters “continue their activity” during and after the coronavirus outbreak by providing guarantees on loans, the notice said.
Dutch potato producers, which depend “heavily” on exports, are faced with full warehouses due to the COVID-19 pandemic response measures, according to a U.S. Department of Agriculture Foreign Agricultural Service report released April 23. About 1.5 million metric tons of the Netherlands’ 2019 potato harvest is still in storage, the report said. Due to “worldwide lockdowns,” Dutch potato growers have lost the equivalent of $186 million to $241 million and are “quite concerned about their inability to identify buyers,” especially as storage costs continue to add up.
The government of Canada issued the following trade-related notices as of April 24 (note that some may also be given separate headlines):
The Directorate of Defense Controls on April 23 released its report to Congress on defense exports licensed under the Arms Export Control Act during 2019. The report, which includes an introduction and a memo to Congress, details the value and quantity of the licensed exports for each country destination and the “data on the actual shipments of those licensed transactions,” the DDTC said.
Export controls and trade restrictions are becoming an increasing part of U.S.-China competition despite little clarity about whether they will work in the long term, trade experts said. The measures also seem to lack a clear focus within both the U.S. government and China, with officials disagreeing on how best to impose restrictions, the experts said.
The Directorate of Defense Trade Controls announced a series of compliance, licensing and management measures to mitigate the impact of the COVID-19 pandemic response measures on industry, the DDTC said in an April 23 notice. The measures include temporary suspensions on certain registration renewal requirements, temporary reductions of certain registration fees and measures to allow companies to work remotely.
Canada and India recently announced increased restrictions on certain foreign investments, following a broader trend of countries scrutinizing investments involving critical technologies (see 2003260003, 2003250033 and 2002260042), according to an emailed report from Baker McKenzie on April 23. Canada announced measures to increase scrutiny on investments “of any value” related to “public health or critical goods and services,” Baker McKenzie said, while India said it will now require government approval for all investments from countries that share its borders. Both actions will likely lead to a more “in-depth examination” of transactions, more detailed information requests from both governments and “lengthier review times,” the alert said.
Vietnam recently announced postponements on collections of value-added taxes for up to five months, according to an April 23 report from the Hong Kong Trade Development Council. The measure will apply to a wide range of Vietnamese sectors, including agriculture, textile, computer manufacturing, automotive and medical services. Companies must apply to the country’s tax offices before July 30 to qualify for the postponement.
Myanmar recently announced relaxed measures for traders due to the COVID-19 pandemic, including an exemption from paying license fees for imports of medicine, according to an April 22 report from the Hong Kong Trade Development Council. Myanmar also eliminated import license requirements for surgical masks, personal protective equipment, medical beds, ventilators and more, the report said. In addition, car dealers are permitted to extend automotive import permits for up to two months.